Anil Ambani resigned as the director of the financially beleaguered Reliance Naval and Engineering Ltd. today, to comply with the companies law a statement said.
Ambani resigned from the group company with immediate effect, “in compliance with provisions of Section 165 of the Companies Act, 2013, prescribing the limit on directorships to only 10 public companies, the company said in its stock exchange filing.
Reliance Naval and Engineering operates India's largest integrated shipbuilding facility and has been facing financial constraints due to a global downturn in the shipbuilding industry and a delay in defence orders.
Earlier in the year state-run Vijaya Bank has classified the company as a non-performing asset. Just before that the company's auditors raised concerns about its ability to “continue as a going concern”.
Reliance Naval and Engineering's shares fell 3.58 percent to Rs 16.15 at market closing on Friday. The stock has returned a negative 67 percent so far this year compared with a 12.32 percent rise in the benchmark S&P BSE Sensex Index.
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